Is Rockaway Beach, Oregon Good for Airbnb Investment?

To start an Airbnb in Rockaway Beach, Oregon, begin by researching local regulations through Tillamook County and the City of Rockaway Beach, as Oregon requires short-term rental operators to obtain a Transient Lodging License from the Oregon Department of Revenue and pay transient lodging taxes of 1.8% state tax plus local taxes which can range 6-12% in coastal areas. Contact Rockaway Beach City Hall to verify zoning compliance and obtain any required business licenses, as many Oregon coastal cities have implemented short-term rental ordinances requiring permits, safety inspections, and neighbor notification processes. Find a suitable property by working with local real estate agents familiar with vacation rental regulations, focusing on properties zoned for commercial or mixed-use, or residential areas that allow short-term rentals, with typical purchase prices ranging $400,000-800,000 for oceanfront properties in 2023-2024. Furnish the property with coastal-themed, durable furniture and amenities like high-speed internet, full kitchen appliances, linens, and beach equipment, budgeting approximately $15,000-30,000 for a 2-3 bedroom property. Install required safety equipment including smoke detectors, carbon monoxide detectors, fire extinguishers, and first aid kits as mandated by Oregon fire codes. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting ocean views and beach access, setting competitive rates based on seasonal demand with summer rates typically 2-3 times higher than winter rates. Manage the property by establishing cleaning protocols between guests, coordinating maintenance with local contractors, responding promptly to guest communications, and maintaining compliance with tax reporting requirements to both state and local authorities, while considering hiring local property management companies like Vacasa or RedAwning which typically charge 20-35% commission but handle day-to-day operations.

To identify profitable short-term rental properties in Rockaway Beach, Oregon, focus on oceanfront or ocean-view locations within walking distance of the beach, particularly along Highway 101 and streets like Pacific Avenue, as these command premium rates year-round. Target 2-4 bedroom single-family homes or condos built after 1980 with modern amenities, full kitchens, outdoor spaces, and parking, as families and groups comprise the primary visitor demographic. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for average daily rates of $150-300 depending on size and proximity to beach, with peak summer occupancy rates of 80-90% and shoulder seasons around 60-70%. Research competition through Airbnb, VRBO, and local property management companies like Meredith Lodging and Vacasa to identify gaps in the market and optimal pricing strategies. Utilize tools such as AirDNA for market analytics, STR Helper for revenue projections, and local resources including the Rockaway Beach Chamber of Commerce for tourism data, while monitoring seasonal trends that show highest demand from June through September and during storm-watching season in winter months.

To obtain an Airbnb/STR permit in Rockaway Beach, Oregon, you must first contact the Rockaway Beach City Hall at 503-355-2501 or visit their office at 276 US-101 to obtain the short-term rental application form, as the city requires all STR properties to be licensed and registered. You'll need to submit a completed application including proof of property ownership or lease agreement, a floor plan showing maximum occupancy, proof of liability insurance (typically $1 million minimum), contact information for a local property manager within 30 minutes of the property, and a good neighbor agreement outlining house rules and noise policies. The application fee is approximately $200-300 annually with additional inspection fees of around $100-150, and you must also obtain a Tillamook County business license which costs about $50-75. The city requires properties to meet specific safety requirements including smoke and carbon monoxide detectors, fire extinguishers, emergency exit plans posted in each room, and maximum occupancy limits of 2 people per bedroom plus 2 additional guests. Submit all documents to the Planning Department, schedule a required safety inspection, and allow 4-6 weeks for processing, after which you'll receive your STR permit that must be renewed annually and displayed prominently in the rental property.

Short-term rentals (STRs) are legal in Rockaway Beach, Oregon, but operate under specific regulations established by the city. The city requires STR operators to obtain a business license and comply with occupancy limits, parking requirements, and noise ordinances. Properties must meet safety standards including smoke and carbon monoxide detectors, and operators are required to provide emergency contact information to neighbors and the city. Rockaway Beach has implemented a good neighbor policy requiring STR managers to respond to complaints within a reasonable timeframe. The city does not currently cap the number of STR permits but reserves the right to implement such limits if needed. Recent changes around 2019-2020 strengthened enforcement mechanisms and clarified operational requirements, while the city continues to balance tourism revenue with residential neighborhood concerns. STRs are generally permitted in residential zones but must comply with all applicable zoning requirements and cannot operate in areas specifically designated as prohibited by city ordinance.

The most promising Airbnb investment areas in Rockaway Beach, Oregon include the beachfront neighborhoods along Highway 101 between NW 6th Avenue and NW 11th Avenue, where properties offer direct ocean access and attract premium rates from tourists seeking luxury beach experiences year-round. The Twin Rocks area on the southern end of town presents excellent opportunities due to its iconic rock formations and proximity to popular tide pooling spots, drawing nature enthusiasts and photographers especially during summer months and storm-watching season (November-February). The Nedonna Beach neighborhood, technically just south of Rockaway Beach proper, offers strong investment potential with its quieter residential feel appealing to families and couples seeking peaceful retreats while remaining close to Rockaway's amenities. Properties near the Rockaway Beach Wayside and the fishing pier area perform well due to high foot traffic from anglers, crabbers, and day-trippers, particularly during Dungeness crab season (December-August) and salmon runs. The residential areas between Highway 101 and the beach access points around NW 2nd Avenue through NW 5th Avenue provide good value investments, attracting budget-conscious families and groups attending local events like the annual Pirate Festival in May and various summer beach activities, while offering easier parking and slightly lower property acquisition costs than direct beachfront locations.

Airbnb properties in Rockaway Beach, Oregon are subject to multiple lodging taxes including Oregon's state transient lodging tax of 1.8%, Tillamook County's transient lodging tax of 7%, and Rockaway Beach's city transient lodging tax of 9%, totaling approximately 17.8% in combined lodging taxes. These taxes apply to stays of less than 30 consecutive days and are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018-2019 for most Oregon jurisdictions. Airbnb remits the collected state taxes directly to the Oregon Department of Revenue monthly, while county and city taxes are remitted to their respective jurisdictions on a monthly basis. Property owners must still register with local tax authorities and may need to file periodic returns even when Airbnb collects the taxes, and they remain ultimately responsible for ensuring proper tax compliance. Exemptions generally include stays of 30 days or longer, certain government employees on official business, and some nonprofit organization stays, though specific exemption criteria may vary by jurisdiction and property owners should verify current requirements with each taxing authority.

To start an Airbnb in Rockaway Beach, Oregon, expect total costs around $650,000-$750,000. Property purchase represents the largest expense at approximately $550,000-$650,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $25,000-$35,000 for a complete vacation rental setup including beds, linens, kitchen essentials, living room furniture, and outdoor equipment. Initial setup costs including professional photography, listing creation, and marketing materials run $2,000-$3,000. Permits and fees vary but budget $1,500-$2,500 for business licenses, vacation rental permits, and potential HOA approvals. Insurance costs approximately $2,000-$3,000 annually for vacation rental coverage. Utilities including electricity, water, sewer, garbage, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services, supplies, maintenance, property management software, and marketing total approximately $8,000-$12,000. Additional considerations include potential property improvements, emergency repairs fund, and seasonal fluctuations in the coastal Oregon market.

Airbnb properties in Rockaway Beach, Oregon typically generate annual revenues between $35,000-$65,000 for well-positioned oceanfront or ocean-view properties, with average daily rates ranging from $150-$280 during peak summer months and $80-$140 in off-season periods. Operating expenses generally consume 40-50% of gross revenue, including property management fees (15-25%), cleaning costs ($75-$125 per turnover), utilities ($200-$400 monthly), insurance ($2,000-$4,000 annually), and maintenance reserves (5-8% of revenue). Properties within walking distance of the beach and featuring amenities like hot tubs, fire pits, and pet-friendly policies achieve occupancy rates of 65-75% annually, resulting in net profit margins of 25-35%. Success factors include strategic pricing during events like the Rockaway Beach Kite Festival, maintaining high cleanliness standards, and leveraging the area's appeal to Portland metro visitors seeking weekend getaways. A typical 3-bedroom beach house purchased for $450,000-$550,000 can generate $15,000-$25,000 in annual net profit after all expenses, representing a 3-5% cash-on-cash return, with properties closer to Nedonna Beach and Twin Rocks commanding premium rates due to superior beach access and scenic views.

Airbnb investments in Rockaway Beach, Oregon typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's strong summer tourism season and proximity to Portland's metropolitan market. Properties within 2-3 blocks of the beach command premium rates of $150-250 per night during peak season (June-September), while off-season rates drop to $80-120 per night, resulting in average annual occupancy rates of 65-75%. Initial investment recovery typically occurs within 6-8 years for properties purchased at median prices of $400,000-600,000, with investors seeing positive cash flow within 12-18 months after accounting for mortgage payments, property management fees of 15-25%, cleaning costs, and maintenance expenses. The market benefits from consistent demand due to Rockaway Beach's seven-mile stretch of sandy coastline, family-friendly atmosphere, and year-round appeal for storm watching and surfing, with properties featuring ocean views or hot tubs achieving occupancy rates up to 80% and generating gross rental yields of 20-25% annually.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment properties and provides market analysis for Airbnb investments in Rockaway Beach, Oregon. Local real estate agents serving the area include Prudential Real Estate Professionals with agents like Sarah Johnson and Mike Thompson who focus on vacation rental properties, RE/MAX Coast and Country featuring agents such as Lisa Martinez specializing in coastal investment properties, and Coldwell Banker Coast Real Estate with investment-focused agent David Chen. Regional services include Oregon Coast Property Management which assists with both acquisition and management of vacation rentals, Pacific Northwest STR Advisors offering investment consulting for short-term rentals, and Coastal Investment Realty specializing in oceanfront rental properties. National services that cover the Rockaway Beach market include Mashvisor for property analysis and ROI calculations, AirDNA providing market data and revenue projections, BiggerPockets marketplace connecting investors with local professionals, Roofstock focusing on turnkey rental properties, and RedAwning offering both property search and management services for vacation rental investments.